Important aspects to consider in real estate investments this year

Working in the real estate industry is one of the most profitable actions an entrepreneur can take. But every year new trends appear, and if you want your business to remain successful then you have to make sure that you meet the market’s requirements. Lately more and more investors use the 1031 exchange to gain more income. This is one of the strategies used by business persons when they want to make their businesses more attractive. They take advantage of the opportunity of having a tax deduction when they exchange a property for another. If you want to do the same, then it is important to check the rules associated with 1031 exchange. So you may wonder now if you should remain with the present real estate strategies or you should use the 1031 exchange strategy. Here are some aspects you should consider if you want to stick with the second option.

Demographics are important

If you are a real estate agent who is specialised in single family residences then you should know that checking the demographics is important. Nowadays the market is influenced by the birth rate and you should not ignore this aspect. Also, you should know that more and more people delay the moment when they will buy a house because they have to pay the debts for their college studies. But this means that the rental market is in full growth and you should focus your effort to that part of the industry. Nowadays the majority of real estate agent focus on local businesses, and if this is the case for you, you should check the demographic trends from your area.

The commercial space is in full collapse

Considering that it is more difficult nowadays to do business in commercial real estate industry you may ask yourself How to do a 1031 exchange? Well, you still have the possibility to exchange a commercial space for another one but you will have to focus on certain aspects. First, you should check the way commercial spaces are changing. Second you should see if they influence the local economy, and how they are doing it. Make sure you know the commercial spaces from your area, and if you are interested in acquiring one, you should first visit it. The fact is that commercial spaces will not disappear, but you have to know for sure what the costs of running one are.

Pay attention to how blockchain is evolving

Bitcoin is considered one of the main applications of Bitcoin, but as you already know the market on which it acts is quite instable. You may ask yourself why it is important to check the Bitcoin market if you are working in real estate domain. Well, any change on this market will lead to insecure transactions. Experts in this domain try to find a way to secure the transfers of assets, but until then you should pay attention to the trends present on the market, to know when it is safe to make the exchange.